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TORONTO, March 3 /CNW/ - Atlanta Gold Inc. (TSXV: ATG) announces plans to undertake a major exploration program at its Atlanta Gold Project currently in development near Atlanta, Idaho. Positive results from exploration programs to date demonstrate the presence of a significant gold mineralized system which remains open in all directions. An aggressive follow-up exploration program is warranted. The Company intends to finance the $5.0 million exploration program from cash on hand of approximately $1.0 million together with the proceeds from future equity financings.
As previously announced, the Company engaged P&E Mining Consultants Inc. ("P&E") of Brampton, Ontario to complete an independent National Instrument 43-101 Technical Report and Pre-Feasibility Study (the "Study") for the Atlanta Gold Project.
P&E will also complete an independent Advanced Scoping Study by mid-2010 for a combined open pit and underground operation at Atlanta to facilitate the transition to the Pre-Feasibility Study by the Fall of 2010. This Scoping Study will include preliminary mine and plant design, capital and operating cost estimates, metallurgy, environmental studies and permitting in detail. P&E will also provide a detailed analysis of historic exploration data including a comprehensive 3-Dimensional model of the 11,400-foot (3,475-metre) long, 30-120-foot (9-37-metre) wide Atlanta Shear Zone which extends from surface to a known vertical depth of 1,600 feet (488 metres) with numerous splays branching off to the northwest and southeast of the main Shear.
The Company's exploration objective is to increase the gold mineral resource inventory at Atlanta by 127,000 ounces from the current 473,000 to approximately 600,000 equivalent ounces of gold by the end of 2010 by:
a. increasing the size of the near-surface, shallow open-pit resource
which can be mined at a relatively low cost;
b. infill drilling to upgrade the resource status of the deeper,
sparsely-drilled, higher-grade (+0.35 ounce-per-ton) (+12.0 grams per
ton) zones found below the Monarch and Idaho areas in the west and
the East Extension area in the east at the 900-1,200 foot horizon.
This work will further support the evaluation of the proposed open
pit and underground mining operation, targeting higher grade mineral
resources that are below the proposed open pits; and
c. to confirm continuity between these higher-grade zones.
The planned program which will include 37,000 to 55,000 feet (11,000 to 17,000 metres) of diamond drilling that will commence in April 2010 with the mobilization of two drills working six days per week on 10- to 12-hour rotating shifts:
- complete 15,000 to 33,000 feet (4,500 to 10,000 metres) of core
drilling to an intermediate depth of 1,200 feet (400 metres) on the
East Extension and Monarch areas to seek extensions to the higher
grade drill intercepts in the Newmont and Glaspey zones. The 2,000-
foot (600-metre) distance between these highly prospective zones is
underexplored as previous programs focused on shallower, potentially
- complete 10,000 feet (3,000 metres) of shallow infill core drilling
to a depth of 400 feet (122 metres) on the East Extension, West
Monarch and Idaho zones to confirm the surface findings and delineate
continuity and grade of the gold-silver mineralization;
- continue rehabilitation of the first 800 feet (244 metres) of the
historic 900 Adit and, if warranted, rehabilitate the next 1,475 feet
(450 metres) of the 900 Adit;
- complete a 12,000-foot (3,658-metre) underground drilling program
from the rehabilitated 900 level drift the to expand the Glaspey zone
(below the East Extension) in at least two directions;
- survey, sample and assay 1,400 feet (427 metres) of trenches, log,
sample and assay six drill holes, and sample and assay approximately
1,000 soil samples to further evaluate the near surface potential of
the Atlanta Shear Zone. The 2008 and 2009 trenching programs exposed
and identified significant gold-bearing mineralization in 95% of the
- continue to evaluate the economic potential of mining and processing
by-products from the Atlanta Shear Zone.
The Company has secured the environmental permits needed to complete the
above drilling programs.
Environmental and development-related initiatives for 2010 include:
- redesign, excavate and expand the capacity of the reclamation ponds
at the 900 Adit to enhance environmental performance;
- continue enhancement of Atlanta's environmental performance,
including ongoing removal of naturally-occurring arsenic from
historic water effluents;
- continue collaboration with local communities, environmental,
regulatory and other stakeholders;
- secure economic, environmental and technical studies and water rights
and permits required to advance the project to production;
- evaluate alternative sites to accommodate infrastructure related to
the Atlanta project;
- dismantle and relocate the property, plant and equipment purchased
from Newmont to Atlanta.
Information of a technical nature in this news release regarding Atlanta has been reviewed by William L. (Bill) Josey who is a designated "Qualified Person" under National Instrument 43-101. Mr. Josey is a registered professional geologist in the State of Arizona.
About the Company
Atlanta Gold Inc. (TSXV: ATG) holds through its 100% owned subsidiary, Atlanta Gold Corporation, leases, options or ownership interests in its Atlanta properties which comprise approximately 2,197 acres located 65 miles east of Boise, in Elmore County, Idaho. A long history of mining makes Atlanta very suitable for development of new mining projects.
The Company is focused on advancing its core asset, Atlanta, towards mine development and production and on acquiring, exploring and developing other attractive gold projects.
This news release contains forward-looking information and forward-looking statements (collectively "forward looking statements") within the meaning of applicable securities laws. All statements, other than statements of historical fact, are forward-looking statements. We use words such as "may", "intend", "will", "should", "anticipate", "plan", "expect", "believe", "estimate" and similar terminology to identify forward looking statements, including with respect to the timing, extent, nature, targets and objectives of the planned exploration program, the completion of additional equity financings sufficient to fund the program, the continuance and enhancement of environmental initiatives and the continuance of developmental initiatives, including securing of requisite permits and the relocation of previously purchased assets to the Atlanta site. Such are based upon assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. These assumptions include those concerning the accuracy of the Company's resource estimates and of the geological, metallurgical and price assumptions on which the estimates are based, the level and volatility of the gold price, the estimated time required for development of the Atlanta Project and related thereto, the time to obtain all required permits and regulatory approvals, the continued availability of financing, the availability of equipment and qualified personnel, the ability to achieve expected timelines and cost estimates and no significant decline in existing general business and economic conditions. Forward looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward looking statements. Risks and uncertainties that may cause actual results to vary include, but are not limited to the speculative nature of mineral exploration, development and mining (including with respect to the interpretation of the geology, continuity, size and grade of mineral reserves and resources and the recoverability thereof); operational and technical difficulties which could escalate operating and/or capital costs; risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards; government action or delays in the receipt of governmental approvals, permits and licenses; changes in resource prices and fluctuations in currency exchange rates; the Company's limited financial resources and the availability of financing alternatives; contests to the title of Company property and changes in general economic conditions or conditions in the financial markets; as well as other risks and uncertainties which are more fully described in the Company's annual information form on Form 20-F, annual and quarterly Management's Discussion and Analysis and in other Company filings with securities and regulatory authorities which are available at www.sedar.com. Should one or more risks and uncertainties materialize or should any assumptions prove incorrect, then actual results could vary materially from those expressed or implied in the forward looking statements and accordingly, readers should not place undue reliance on those statements.
Readers are cautioned that the foregoing lists of risks, uncertainties, assumptions and other factors are not exhaustive. The forward-looking statements contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements contained herein or in any other documents filed with securities regulatory authorities, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.
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SOURCE Atlanta Gold Inc.
For further information: For further information: Atlanta Gold Inc.: Bill Baird, President and CEO, Telephone: (416) 777-0013, Fax: (416) 777-0014, E-mail: firstname.lastname@example.org; CHF Investor Relations: Christopher Haldane, Account Manager, Telephone: (416) 868-1079, extension 237, Fax: (416) 868-6198, E-mail: email@example.com